Casey was platted in 1869. The community has the name of a railroad man.
In 2015 the City Clerk, Dorothy Dillinger, was indicted for misappropriation of city funds and burning down the city hall. She stole up to $300,000 in city funds and spent it on purchases at Victoria's Secret, Wal-Mart, among other places. Dillinger pleaded guilty in federal court and received a prison sentence of five years from judge James E. Gritzner. A new city hall and community center, which replaced the one destroyed in an attempt to cover up the embezzlement, had its groundbreaking in 2018. The estimated cost is $1 million. The majority of the building would be dedicated to community center functions.